Gas prices in Europe soar on renewed Russian gas supply uncertainty

Strong points

The one-month TTF price soars to nearly 300 euros/MWh

Nord Stream will close for three-day maintenance on August 31

No easing of the vigor of gas prices in Europe

Gas prices in Europe jumped on August 22 after Russia’s Gazprom announced at the end of August 19 that it would completely shut down the Nord Stream gas pipeline for three days of maintenance on August 31.

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The month-ahead TTF price soared to almost 300 euros/MWh at the start of August 22, reaching as high as 295 euros/MWh by 12:00 GMT, due to renewed fears that Nord Stream flows could return after the works .

The contract was last priced at 247.50 euros/MWh on August 19, according to Platts price assessments by S&P Global Commodity Insights, with prices hitting daily highs over the past week.

Prices have reached sustained highs since September 2021, first due to Russian supply constraints and storage concerns, followed by a price spike after the Russian invasion of Ukraine on February 24 and reductions in Nord Stream flows.

Gazprom said after the market closed on August 19 that it would completely halt gas supplies through the Nord Stream pipeline to Germany for three days from August 31 to September 2 to carry out maintenance work on the only operational turbine. from the Portovaya compressor station. .

The Nord Stream gas pipeline is currently operating at only 20% of its capacity, with only one operational turbine, capping flows at 33 million m3/d.

Gazprom said supplies via Nord Stream would resume at that level once the necessary work on the turbine is complete.

“On August 31, the only operational Trent 60 unit will be shut down for maintenance and preventative maintenance,” he said.

The Trent 60 turbine is also known as the Siemens SGT-A65 turbine used in Portovaya.

“A set of routine maintenance under the current maintenance contract will be carried out jointly with specialists from Siemens,” Gazprom said.

“Once the work is completed and in the absence of technical malfunctions of the unit, gas transport will be restored to the level of 33 million m3/d”, he specified.

Gazprom said that according to the technical documentation of Siemens, it is necessary to carry out maintenance on the unit every 1000 hours.

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